1.+THE+WORK

Here, we simply insert the meat - the text which will be the basis of the presentation.

1. Why international alliances?
International strategic alliances enhance ﬁ rm value by allowing partnering ﬁ rms to:
 * 1) keep abreast of rapidly changing technologies (Resource),
 * 2) spread the costs and risks of innovation (Resource),
 * 3) gain access to speci ﬁ c foreign markets and distribution channels (Resource),
 * 4) learn the country-speci ﬁ c comparative advantages embedded in their partners (Knowledge access, Social networks)

__Knowledge-based view__

 * primary advantage of alliances over both ﬁ rms and markets is in //**accessing**// rather than //**acquiring**// knowledge
 * alliances contribute to the ef ﬁ ciency in the application of knowledge:
 * 1) by improving the ef ﬁ ciency with which knowledge is integrated into the production of complex goods and services
 * 2) by increasing the ef ﬁ ciency with which knowledge is utilized
 * Static ef ﬁ ciency advantages of alliances are enhanced where there is **uncertainty over future knowledge** **requirements** and where **new products offer early-mover advantages**
 * Although ﬁ rms are generally superior to both alliances and markets in integrating knowledge to produce goods and services, alliances can overcome the limits of ﬁ rms in **encompassing highly differentiated knowledge integration processes**, while offering **ef** **ﬁ** **ciencies in knowledge utilization**.

__New Resource-based view__

 * Firms now seek **not complementarities but synergies** (learning and knowledge creation instead of sharing existing knowledge)
 * 1) Complementary Knowledge Networks (OLD):
 * Share pre-determined project-specific knowledge across well-defined boundaries;
 * TRANSFER EXISTING knowledge - NOT CREATE NEW
 * Example: marketing and licensing agreements
 * 1) Synergetistic Knowledge Networks (NEW):
 * Develop synergies of knowledge - new knowledge
 * Innovations and process improvements
 * More uncertainty, need more trust, more difficult to manage - so less widely implemented

__Social Network View - a new, quite consistent approach__
**Ultimately**: organizations need resources, complementarities, etc., however, **it's** **ﬁ** **rm’s social connections** that help it identify new alliance opportunities and choose speci ﬁ c partners that possess such complementarities
 * Most important facet of an organization’s environment is its social network of external contacts
 * Economic action is embedded in social networks (nodes - persons, organizations, links - friendship, transfer of funds, membership)
 * Embeddedness in social network to reduce uncertainty
 * Firms tend to enter new partnerships with members of social network of their past alliances: **I ALLY WITH THOSE I ALREADY KNOW -** **there is empirical evidence from international alliances in Denmark** **+ from K-Web (Dutch distance education alliance** **+ from other research: MORE ALLIANCE EXPERIENCE - MORE SUCCESS, MORE NEW ALLIANCES**
 * Reputation of a target in the network also matters: if a firm seeks to enhance its own attractiveness, it is likely to look for a partner with hight reputation